1Finance

Methods of Forex Trading



There are many different methods of Forex trading or foreign exchange market trading. All of them employ leveraging -- basically, the use of borrowed capital -- to make money. This has both an upside and a downside. Leveraging makes it easier to make a lot of money with a limited amount of your own capital. It also makes it easier to lose everything you've invested. Below is a list of some popular methods of Forex trading, with the benefits and pitfalls of each briefly described.

1. The Forex Day Trading Method

2. Scalping

3. Big Picture Forex Trading

4. Automated Forex Trading



Some Practical Advice
No matter how you plan to trade, you need to keep your emotions in check, watch your risk, and be honest with yourself when you are having trouble. Even professional traders don't like to admit when they are having a losing streak, or what is causing it, but it only hurts your bottom line when you don't face problems. That's a bit of a general business principle, but it strongly applies to trading.


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